Colorado Creative Music Case Study

COLORADO CREATIVE MUSIC

Company overview music recording studio ¨ founded in 1995 by Darren Curtis Skanson ¨ established for producing, promoting and selling his own records ¨ developed into microlabel with 4 product lines and 11 different albums
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Leading CCM
Vision, passion in Music ¨ Cousin’s business internship at CCM ¨ Knowledge -> Ted -> processes ¨ Waiving day to day operations down the chain ¨ Unexpected concert ¨ Andy signed up with CCM
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CCM vs. competition
Passion for art (music) ¨ Technological limits changed Tapes, Vinyls -> CDs (Truly a revolution) ¨ Large differences among competitors (advertisement) ¨ Necessity of touring across the country (more personal approach)
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Driving forces
Financial - Lowered initial investment (technology) - Easy to enter the market - Digitalization (fixed costs) ¨ Non-financial (art) - To create a better piece of art - Essential for business to happen
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Attractiveness of the industry from the standpoint of good long-term profit prospects
Health problems of Mr. Darren Skanson ¨ Instead of 2 planned CDs only 1new CD ¨ He found new musicians ¨ Need to sell more CDs (no more sales, no profit) for acceptation of the CDs by distributors ¨ Direct sales are big part of sales ¨ Finding of some responsible and skilful person
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SWOT analysis strengths decreased expenses due to digital revolution ¨ position on the market ¨ Darren’s presence at shows - the direct sale
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weaknesses lack of managerial skills ¨ insufficient distribution channel ¨ reducing profit
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SWOT analysis con’t opportunities reaching broader audience with promoting various artists and music styles ¨ music events outside Colorado ¨ cooperation with retail outlets nationwide
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threats new entrants ¨ existing competition ¨ minor position on the market ¨ piracy
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Assessment of CCM’s financial performance
Not very various financial performance